Coal India set to embrace PPP model for difficult mines
In accordance with the Centre’s public private partnership (PPP) model announced in 2013-14 budget, Coal India (CIL) is finally preparing to float an expression of interest (EOI) in a couple of months to award long-term mining contracts to private players on a turnkey basis, to boost production.
“South Eastern Coalfields (SECL) and Eastern Coalfields (ECL) have identified some underground critical mines, where high technology mining would be required and they would be the first to award mines under the PPP model during the current fiscal,” a top official said.
“The miner would be selected through a tendering process. First, there would be a EOI, then pre-bid meeting and final bid. The clearances and land should be there and the particular mine should call for a higher level of technology. And of course we will have to ensure this model is cost-effective,” he said, adding, CIL is expecting foreign miners to come forawrd for this.
Engaging private contarctors for mining is already operational in CIL under Mine Developers and Operators (MDOs) model, but the state-owned miner is now looking at an expansion of the current model.